Pros and cons of PayPal

PayPal is now one of the largest online payment processors in the world known for secure B2B payments. The payment gateway offers 24x7 fraud prevention services giving you the freedom to shop from millions of stores. You can have many reward benefits of PayPal as a merchant or an online shopper without top-ups. On the contrary, there are some downsides to this payment service asking your attention, such as transaction fees and delayed payment processes. Thus, it's essential to go through the pros and cons of PayPal before you choose it for your business.

A little about PayPal

If you have a business, selling online is a big task. People often need to pay before getting what they want, so you must have a trustworthy payment method. One of the best ways to receive money from your customers is through PayPal.

They are one of the most recommended online payment processors globally and have over 400 million active accounts as of 2021, with over 377 million merchants.

PayPal has great customer service that is open 24/7, and it's very easy to contact them. Also, you don't need to provide any credit card information when you sign up for an account because your bank account or some card will be used automatically.

Straightforward Pros of PayPal to Note

There are many reasons why individuals and businesses have turned to PayPal for fast and easy transactions. Out of surprise, the services such as security and instant touch access account for various pros of PayPal. If you are looking for good reasons to use PayPal for your business or personal use, here are a few to consider.

1. PayPal is very safe

All the payments are made over HTTPS protocol, and they use advanced security measures like firewalls, encrypted passwords, etc. When it comes to money, nobody wants to take any chances. PayPal's total revenue amounted to $21.4 billion in 2020, so they have all the reasons in the world to make their service as secure as possible. Also, they are certified by Verisign, which is a big guarantee that they can protect your data.

2. PayPal is very easy to use

If you want to buy something online, the first thing you have to do is open your account and log in to the store's website where you want to make a purchase. In the next step, you can choose PayPal as your payment method and provide them with information from your bank account or credit card.

Once those details are submitted, you have to put in your password and confirm the transaction for it to go through. The advantages of the PayPal system are that nobody will steal your card information, you don't have to give them any personal data, and the payment is not made until you press the button "buy." Also, PayPal provides great customer service 24/7, which can help if something goes wrong with your order or delivery.

Also Read: Pros & Cons of Venmo

3. PayPal can be used in many ways

The great thing about PayPal is that you can pay for almost anything with it. It works like a normal credit card, so there are no financial boundaries when using their services. For example, you can use your PayPal account to book airline tickets, and hotels or even buy home appliances online. You also don't have to worry about the safety of your credit card information when you do that because PayPal is already securely integrated into its system.

4. You can use PayPal on eBay

eBay and PayPal are partners, so every user with a PayPal account also has an eBay one. This gives many advantages like using only one secure password to log in to both services and making transactions much easier.

You don't have to provide them with your credit card number and banking details because you can simply connect a basic account to PayPal and use it for all the payments. This makes online shopping a lot more comfortable, which means that if you want to sell something, this is one of the best ways to do it.

5. Exceptional customer service is one of the notable pros of PayPal

The main benefit of PayPal is that you can contact them with any problem or question 24/7. You can either call or use their online chat system, ask the community members, or even contact the PayPal Resolution center to get in direct connection with a representative who knows the answer to every question. Furthermore, if you are not satisfied with the service, you can easily cancel your account without any issues.

6. PayPal App

PayPal has many advantages, and one of them is using their system without having it on your computer. Many customers don't want to spend time logging into their PayPal account via computer. If you are one of them, you can try PayPal to save your time. The PayPal app comes with a One-touch feature that lets you tap into your account instantly without requiring your password.

Notable Cons of PayPal you Need to Know

Since everything based on technology has its share of the good and the bad, it’s time to point out some cons of PayPal to help you make an informed decision. Some of the points should be clearly understood whether you are a sender or a receiver.

1. PayPal holds your money

If you have two PayPal accounts and one of them has more than USD 2000, you will not be able to transfer the money to your normal account. This rule was created to avoid some illegal activities, but it disadvantages new users that need some extra cash on their accounts.

2. Slow Transaction process is one of the common cons of PayPal

If you're selling items, it can be a problem for you to get paid before the customer receives his goods. It might take some time because PayPal has a really big queue of payments, and they need to process each payment manually.

Even if a customer has paid, you'll be able to receive it in up to 5 business days for the money to show in your bank account. The length of time also depends on your bank's clearing process, which may require further clarification if the amount is huge.

3. Transaction Fees add to further disadvantages of PayPal

Although PayPal doesn't charge your transactions made for a family or a friend, PayPal will be very expensive for you if you have a business and you send hundreds of payments per month. In addition, they charge a 1% to 3% fee from your payment, so it could cost a lot if you're selling big items.

4. Your bank may charge you additionally

Some banks charge a transaction fee if you transfer money from your PayPal account to your bank account. Each financial institution determines this, but it is generally a set amount regardless of how much money you get from PayPal. Keep in mind the Foreign exchange rates and the currency you are transacting in.

5. Prerequisites and Verification Process

You must have a valid email address to create a PayPal account and use its service. If the sender or the receiver doesn't have one, the transaction will not be possible. Also, consider that bank verification also takes time as PayPal transfers a little amount to your linked bank account, and you need to state the exact figure.

6. PayPal doesn't support some countries

Before deciding, you must check the list of countries PayPal does not support currently. Some of them are Bangladesh, Pakistan, Middle Easterners, and African nations. At present, there are around 28 countries that are off the list for PayPal.

So if you have a business and you need to send money to big companies based in one of these countries, you won't be able to do it. However, you can contact PayPal customer service and ask them how to solve the problem. If you continue doing this, your account might be blocked again, so ensure that you provide all the information they need.


PayPal is still a popular and trusted way to send money online and accelerate business growth for millions. However, you should be aware of the Pros and cons of PayPal before using it for your business or personal use. The payment process and transactions are atop these considerations.

Pros and cons of PayPal

Frequently Asked Questions

Is it worth having a PayPal account?

PayPal is extremely simple and user-friendly to use. PayPal is a very simple and manageable payment option, whether you're purchasing something online or enabling it as a payment option for your business. There's no need to pay someone to set up a PayPal account, which saves you money.

Is it safe to pay with PayPal?

PayPal is a highly secure financial service with some of the best end-to-end encryption available. Ensure to enable two-factor authentication and cancel any unused bank accounts or email addresses, no matter how secure your service is. Remember that no online service is immune to hacking or theft even with all this security.

Is there any downside to using PayPal?

If you want to send money to friends or family with PayPal, you may do so for free. If you're using PayPal as part of a commercial transaction, though, you'll be charged fees. In addition, if you want quick access to your money, PayPal charges a 1% fee; a free bank transfer takes days.

Will PayPal cover me if I get scammed?

PayPal Buyer Protection covers you if something goes wrong with your eligible transactions. Get a total refund if a qualifying order isn't fully described or does not arrive at your home.

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